City, Lotte ink smart city deal

Update: July, 27/2017 - 09:00
Representatives from HCM City People’s Committee and the Lotte Group sign a contract for the construction of Thủ Thiêm Eco Smart City in District 2. — Photo VNA
Viet Nam News

HCM CITY — The HCM City People’s Committee and Korean conglomerate Lotte Group on Tuesday signed a contract on the construction of the Thủ Thiêm Eco Smart City in District 2.

The 74,420sq.m project in the core of the Thủ Thiêm New Urban Area will cost VNĐ20.1 trillion (US$884 million) in addition to compensation costs to be paid for use of land.

Nguyễn Thành Phong, chairman of the city’s People’s Committee, and Shin Dong Bin, chairman of Lotte, attended the signing ceremony.

Phong praised the group, which has had many major investments in Việt Nam and become a well-known brand in the country.

He vowed to continue creating favourable conditions for foreign investors, including the Lotte Group, to help them operate effectively and profitably in the city.

The Lotte Group, which had been pursuing the project for years, received approval in 2014. Construction will begin as early as next quarter.

It will feature a trading-financial-banking centre, hotels, an office tower, and serviced and residential buildings on 50,120sq.m. The remaining area will be used for roads and other infrastructure.

Construction on the project, licensed for 50 years, is expected to take six years.

Affiliate companies like Lotte Asset Development Co Ltd, Lotte Shopping Co Ltd, Hotel Lotte Co Ltd, and Lotte Engineering & Construction Co Ltd will participate in the project.

Lotte has escrowed around VNĐ2 trillion ($88 million) for fees for six lots of land.

The developer is paying for and building some of the infrastructure, which will ease the burden on the city, which is paying off a VNĐ29 trillion ($1.28 billion) loan to develop the Thủ Thiêm peninsula.

The interest on the loan is VNĐ2.9 billion a day, according to the city.

The 657ha peninsula is located to the east of the Sài Gòn River, and is adjacent to districts 1, 7, 9, and Bình Thạnh.

It is expected to become a hub for culture, entertainment as well as financial and commercial services. — VNS